KOSPI Valuation

CAPE divides the index by the average of the last ten years of inflation-adjusted index earnings, which smooths the earnings cycle. Korea's series only starts in 2013 (KRX index P/E data begins in 2004), so compare today's value with its own history, not with the US CAPE (1881–). Buffett Indicator divides KOSPI market cap by the sum of the last four quarters of nominal GDP. Korean exporters such as Samsung Electronics earn much of their profit abroad, so market cap ÷ GDP runs structurally high; the position versus its own mean and standard deviation is more useful than the 100% line. Neither number is a timing signal. Data: Bank of Korea ECOS (index P/E, CPI, market cap, GDP).